179D July Updates
Have you heard that 179D is considered to be one of the best energy tax provisions to save jobs and careers? This tax deduction section focuses on Energy Efficient Commercial Buildings. There have been even more proficient proposed updates that allow additional savings over a longer period. This tax break not only benefits businesses, but also any building owners or tenants that qualify within the guidelines of section 179D. This tax provision expired in 2014 and has been moving forward to get final approval for a two-year extension including a few other expansions.
Included in the bill was an expansion of 179D to include tribal governments and the expansion to not only state colleges and universities, but to private colleges and universities as well.
In a decisive decision, the Senate Finance Committee has approved a two-year extension on the tax extenders that officially expired the end of 2014. This extension of 179D through 2016 will not only help small businesses to save money on the total group of over 50 credits and deductions but individuals as well.
This in not only great news for the businesses that qualify but also for our country as a whole. Being more energy efficient is a benefit to all taxpayers. This two-year extension will allow even more buildings to be built and renovated to follow the energy efficient guidelines of 179D.
There is another great provision in the tax break that any designer and contractor that is working on any state, local government, or federal contracts can end up with thousands of dollars back into their company. This ideal tax break involves any newly constructed building or renovated building that meets the energy efficiency requirements.
There are certain modifications regarding the building that must be fulfilled to qualify for this deduction.
What to Expect in the Future
With tax breaks leaning towards more efficient energy consumption, there may be more renewals on 179D and an increase in the benefits as well. The future will hold more energy efficient commercial buildings with contractors, architects, and engineers saving thousands of dollars over these years.
The bottom line of this particular tax benefits is focused on energy efficiency and the incentive is so great that in time the commercial buildings will not be at the top of the list of the greatest consumption of our energy. Look for a possible increase in the deduction per square foot, which is currently at $1.80 to a possible $4.
With the Senate Finance Committee approval of the proposed extension, there is little doubt this will be reviewed by the Senate before the August recess. The 179D extension package may not be debated until well into October. However, with the current deadline of 2014 allows everyone meeting the current criteria to be able to take advantage of this tremendous tax break.
It is greatly anticipated that the Senate will vote in favor of the 179D extension bill. Of course once this task is agreed and approved, then the bill goes before the president to sign off on the bill.